Financing and Leasing Options

Equipment Finance Agreement (EFA)

• Set-up as a standard fixed rate finance agreement.
• Your company owns the equipment and is entitled to depreciate the equipment against your taxable revenue.
• Can be set up as a Balloon Note. This structure re quires that at the end of the term, a one time lump sum payment is required. Usually equal to 10—20% of the asset cost.

$1.00 Purchase Option Lease

• Similar to the EFA in that the monthly payment is fixed.
• The customer may also depreciate the asset.
• The customer will take ownership of the equipment at the end of the term for $1.00.

Residual Lease

• The customer will make regular monthly payments throughout the term. At the end, a residual value exists. The equipment can either be purchased for the residual value or returned to the lessor.
• The customer can expense the lease payment pre-tax.

90 Day Deferred

• This can be set-up either as an EFA or a $1.00 Purchase Option Lease.
• First and Last payment are due at signing, then a minimal contact payment ($25-$100) is due for the next three months.

Skip Payment

• This can be set-up either as an EFA or $1.00 Purchase Option Lease.
• First and Last payment are due at signing.
• Each year will consist of 9 regular payments and 3 contact payments.

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